U.S. banks likely to lose revenue, jobs

By Madlen Read

Associated Press

NEW YORK - The U.S. financial industry has been shedding jobs at a record clip, and some analysts predict the pace will only accelerate over the next year and a half as banks cut costs in the face of the housing-market slump and the weak economy.

Analysts at the financial-research firm Celent L.L.C. said in a report yesterday that they expected the U.S. commercial-banking industry - essentially, all companies that lend or collect deposits - to lose 200,000 of its 2 million jobs over the next 12 to 18 months.

An annual loss of 200,000 jobs at the nation's commercial banks would be an unprecedented number.

In 2007, the entire financial-services sector - which consists of mostly commercial banks - announced job cuts that totaled a record 153,000, according to job-placement consultancy Challenger, Gray & Christmas Inc., of Chicago. More than half of those cuts were in the mortgage-lending business and occurred all over the country, particularly in New York and California.

Octavio Marenzi, the head of Celent's financial-consultancy unit, said more layoffs were inevitable as the subprime crisis hit other parts of the banking industry and spread beyond mortgages to mortgage-related products, such as home-equity loans, and other types of lending, such as credit cards.

"The banking industry over the past 40 years has never seen a downturn in its revenue growth," Marenzi said. "In 2008, it looks like it will decrease for the first time in living memory. They're going to have to respond with severe cost cutting. It's not an environment they're entirely used to."

The credit crisis began in earnest last summer, when the markets tightened up at the sight of spiking subprime-mortgage defaults.

"There's no horizon yet that anybody can see," said John Challenger, who runs Challenger, Gray & Christmas. "New events keep rolling out . . . suggesting that there's more to come."

Financial-services companies announced in January that they were cutting 16,000 U.S. jobs, and companies said in February that they were trimming 6,000 more, Challenger said. Those figures are below last year's peak in August, when companies announced they were cutting nearly 36,000 jobs, but analysts expect further bloodletting in the coming months.

Former steward harbours Slipper dream

Tony Arrold | April 03, 2008

A PERTH two-year-old trained by a former steward will be on trial on Saturday for a trip east to run in the $3.5m Golden Slipper Stakes (1200m) on April 19.

Sheenasaidgrey will be Sydney-bound if he performs to expectations in Western Australia's richest juvenile race, the $500,000 Karrakatta Plate (1200m), at Ascot.

Like the unbeaten Adelaide filly Augusta Proud - a confirmed Slipper runner after her pleasing progress since arriving in Sydney late last week - Sheenasaidgrey is not entered for the Slipper.

But trainer Ken Williamson yesterday confirmed a $150,000 late entry fee would be paid if the gelding completes a hat-trick in the Karrakatta Plate, which has a winner's share of $340,000.

With earnings of $126,550 from three wins and two seconds from his only five starts, Sheenasaidgrey would be assured a place in the Slipper field of 16 if he wins Saturday's big prize.

And in anticipation of Sheenasaidgrey winning well, Williamson has already looked to finding available air transport to Sydney next Wednesday.

Sheenasaidgrey is one of 18 horses Williamson has in stables on Ascot racecourse. Williamson has held a trainer's licence for three years, returning to racing after 12 years in retail trading. That followed 10 years as a stipendiary steward with the Western Australian Turf Club.

Sheenasaidgrey will be Williamson's first interstate racing venture if he wins the Karrakatta Plate. Fifteen two-year-olds have been declared for the set-weight race, with Sheenasaidgrey grabbing an early advantage with the number one barrier.

"It won't be an easy race but at least with that draw we can please ourselves which option we take to ride him in front or sit just off the speed," Williamson said.

Sheenasaidgrey jumped from barrier one and led throughout to win the $70,3000 Perth Stakes (1100m) at Ascot on March 22 at his most recent start.

In that race, he dealt with Grand Nirvana (second), Zeda Mak (third), Ten Degrees (fourth) and Amelia's Reason (fifth) - a quartet which will make up the main opposition in the Plate.

Sheenasaidgrey would join a handful of two-year-olds out of Western Australia that have tried, without success, to win the Golden Slipper.

Paklani, third to Canny Lad in 1990, has performed the best. WA has not had a Slipper runner since 1995 when Daney Boy ran last of 16 to Flying Spur.

Perth racing is committed to the Sydney autumn carnival through Megatic, a lightly raced but very promising three-year-old who is well-regarded for the $1.8m Doncaster Handicap (1600m) on April 26.

Megatic arrived in Sydney early yesterday after an overnight flight from Perth.

Trainer Albie Beckett will open Megatic's Sydney program in the $200,000 Hobartville Stakes (1400m) at Rosehill on Saturday week.

* Gale force winds forced the Sandown meeting in Melbourne yesterday to be abandoned for safety reasons after two races.

The wind caused sections of the running rail on the lakeside and hillside tracks to collapse.

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